Intuitive Cognitive Abilities

This study explores the relationship between intuitive cognitive abilities, associated with System 1 in the dual-process theory of decision making, and attitudes towards risk and ambiguity through a laboratory experiment. Central to our approach is the WarmApp activity, a novel computer-based tool designed to assess various domains of intuitive cognition.

We employ a two-parameter model to estimate risk and ambiguity attitudes based on responses to experimental tasks. Additionally, our study investigates the potential of WarmApp training as a means to mitigate ambiguity aversion. Results indicate that individuals with higher intuitive cognitive abilities are more tolerant of risk and ambiguity, and that targeted training using WarmApp can effectively reduce ambiguity aversion in individuals with lower innate System 1 proficiency. These insights contribute to the understanding of how intuitive cognition influences economic decision-making and underscore the potential of cognitive training in modifying attitudes towards ambiguity.